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Discuss the duties of a principal
to his agent. Cite relevant
authorities.
• These duties may be summarized as
follows :
– To pay the agent the commission or other
remuneration(upah) agreed, unless the agency
relationship is gratuitous
– Not to wilfully(dgn krs hati) prevent or
hinder(sekat/halang) the agent from earning
his commission
– To indemnify(beri jaminan ganti rugi) the agent
for acts done in the exercise of his authority
• The right to be indemnified entitles the
agent to recover not only his commission
or remuneration but also money which
he paid on the principal’s behalf and all
losses suffered by him in carrying out the
directions of his principal.
• However, the agent losses his right to be
indemnified if he acts beyond his duty or
if he has performed his duty negligently.

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  • 1. Discuss the duties of a principal to his agent. Cite relevant authorities.
  • 2. • These duties may be summarized as follows : – To pay the agent the commission or other remuneration(upah) agreed, unless the agency relationship is gratuitous – Not to wilfully(dgn krs hati) prevent or hinder(sekat/halang) the agent from earning his commission – To indemnify(beri jaminan ganti rugi) the agent for acts done in the exercise of his authority
  • 3. • The right to be indemnified entitles the agent to recover not only his commission or remuneration but also money which he paid on the principal’s behalf and all losses suffered by him in carrying out the directions of his principal. • However, the agent losses his right to be indemnified if he acts beyond his duty or if he has performed his duty negligently.